The Data Presented Below Are for Falconi,Inc -What Is the Effect on Net Accounts Receivable When Falconi

Multiple Choice

The data presented below are for Falconi,Inc.for 2017.
$\begin{array}{lr}\text { Credit sales during the year } & \$ 2,100,000 \\\text { Accounts receivable-December } 31,2017 & 295,000 \\\text { Allowance for doubtful accounts-December } 31,2017 & 28,000 \\\text { Bad debts expense for the year } & 17,000\end{array}$

-What is the effect on net accounts receivable when Falconi records its estimate for bad debts expense using the allowance method?

A) Net accounts receivable decrease.
B) Net accounts receivable increase.
C) Net accounts receivable stay the same.
D) Net accounts receivable both increase and decrease.